February 26, 2026
Investment Summary
U.S. equities advanced Wednesday with performance once again concentrated in mega-cap technology. The Dow gained +0.63%, the S&P 500 rose +0.81%, and the Nasdaq outperformed +1.26%, marking its first back-to-back 1%+ gains since mid-December. However, the equal-weight S&P trailed the cap-weighted index by approximately 75 bps, highlighting persistent narrow leadership.
Technology (+1.79%) and Financials (+1.68%) led sector gains. Banks, investment banks, credit cards, payments and exchanges rebounded after recent underperformance, while memory and semiconductor names remained the core leadership cohort ahead of NVDA earnings. High-beta and retail-investor favorites also rallied. In contrast, Industrials (-0.79%), Real Estate (-0.70%), Consumer Staples (-0.58%) and Energy (-0.42%) lagged. Homebuilders, machinery, building materials, A&D, chemicals and select cyclicals remained soft.
Cross-asset moves reflected modest risk appetite. Treasury yields edged higher (2Y 3.47%, 10Y 4.05%) following a soft $70B 5-year auction that tailed 0.7 bps with the weakest bid-to-cover since last July. The dollar index slipped to 97.70. Gold added +1% and silver surged +4%, pushing back above $90. Bitcoin jumped +7.4%, retracing prior volatility. WTI crude fell -0.3% following a 16M barrel U.S. inventory build and reports OPEC+ may consider a 137K bpd production increase.
Earnings remain a constructive macro pillar. With over 90% of S&P 500 companies reported, aggregate earnings growth is tracking near +14% Y/Y. NVDA delivered another decisive beat-and-raise cycle (~$2B revenue beat; guidance ~$6B ahead; gross margin maintained at 75%), reinforcing hyperscaler compute durability. However, CRM and SNOW results highlighted ongoing scrutiny around application-layer growth sustainability and valuation sensitivity.
Trading Digest
Semiconductors and AI infrastructure again drove index-level gains. NVDA’s results validated sustained accelerator demand and capital intensity across hyperscalers. PSTG and NTNX benefited from AI-related shipment commentary and strategic partnerships. Memory pricing strength remains a double-edged sword, supporting semiconductor margins while pressuring integrator hardware names.
Software stabilization remains tactical rather than structural. CRM’s weaker core performance overshadowed its $50B repurchase authorization. SNOW’s +27% product revenue growth guidance exceeded expectations but valuation compression persists. TTD’s softer Q1 revenue guide and muted IP growth at SNPS reinforced the shift in AI disruption anxiety toward application-layer models.
Financials rebounded as disinflationary concerns tied to AI-driven productivity moderated. However, select private credit names exhibited NAV erosion and credit quality deterioration. Barclays noted corporate bond markets remain historically competitive, underscoring liquidity resilience.
Energy crosscurrents remain complex. OPEC+ signaling incremental supply increases, a 16M barrel U.S. inventory build, and ongoing geopolitical uncertainty surrounding Iran negotiations are keeping crude range-bound. Lithium producers rallied on Zimbabwe’s export ban, reinforcing strategic materials and supply-chain optionality themes.
Policy risk remains elevated but contained. USTR Greer reiterated tariffs could reach 15% or higher for some countries, though no incremental macro shift materialized during the session.
Thematic Tail of the Tape
AI Infrastructure Leadership: NVDA’s beat-and-raise confirms durability of multi-year compute investment cycles. Accelerators, networking, and data-center buildout retain superior earnings visibility versus application-layer SaaS.
Application-Layer Margin Sensitivity: CRM, TTD and SNOW highlight that valuation resets and AI-driven pricing pressure remain real risks. Short-covering rallies do not yet constitute structural reacceleration.
Capital Markets & Liquidity: Strong corporate bond demand offsets pockets of private credit stress, lowering near-term systemic risk probability despite selective balance-sheet strain.
Energy & Strategic Materials: Lithium export bans, OPEC maneuvering and Iran negotiations maintain embedded geopolitical risk premia in energy and critical commodity exposures.
Positioning Implication: Overweight compute infrastructure and capital-markets platforms. Remain selective in SaaS pending clearer evidence of durable margin expansion. Maintain tactical exposure to strategic materials amid ongoing supply constraints.
Top 10 Daily Performers
| Ticker | ETF Name | 1-Day % | 1-Month % |
| CRPT | First Trust SkyBridge Crypto Industry & Digital Economy ETF | 7.32% | -22.64% |
| BITQ | Bitwise Crypto Industry Innovators ETF | 4.49% | -11.22% |
| IBLC | iShares Blockchain and Tech ETF | 4.42% | -12.62% |
| ARKW | ARK Next Generation Internet ETF | 4.04% | -12.96% |
| DAPP | VanEck Digital Transformation ETF | 3.90% | -16.75% |
| FDIG | Fidelity Crypto Industry and Digital Payments ETF | 3.36% | -14.08% |
| IHAK | iShares Cybersecurity & Tech ETF | 3.17% | -11.49% |
| IGV | iShares Expanded Tech-Software Sector ETF | 3.11% | -17.26% |
| XSW | State Street SPDR S&P Software & Services ETF | 2.84% | -16.77% |
| FDTX | Fidelity Disruptive Technology ETF | 2.69% | -4.00% |
Bottom 10 Daily Performers
| Ticker | ETF Name | 1-Day % | 1-Month % |
| ITB | iShares U.S. Home Construction ETF | -3.38% | 1.18% |
| XHB | State Street SPDR S&P Homebuilders ETF | -2.65% | 2.17% |
| TAN | Invesco Solar ETF | -2.02% | 7.39% |
| HOMZ | Hoya Capital Housing ETF | -1.53% | -1.74% |
| LABU | Direxion Daily S&P Biotech Bull 3X Shares | -1.41% | -1.99% |
| ROKT | State Street SPDR S&P Kensho Final Frontiers ETF | -1.39% | 0.97% |
| URNM | Sprott Uranium Miners ETF | -1.05% | -3.24% |
| PAVE | Global X U.S. Infrastructure Development ETF | -1.04% | 7.77% |
| UFO | Procure Space ETF | -1.00% | -5.45% |
| PBE | Invesco Biotechnology & Genome ETF | -0.96% | -1.45% |
Top 10 – 1M Fund Flows
| Ticker | ETF Name | 1-Day % | Flow |
| VTI | Vanguard Total Stock Market ETF | 0.77% | $4,931,721,778 |
| EEM | iShares MSCI Emerging Markets ETF | 1.10% | $2,678,069,254 |
| IGV | iShares Expanded Tech-Software Sector ETF | 3.11% | $2,645,063,466 |
| AGG | iShares Core U.S. Aggregate Bond ETF | -0.05% | $2,426,748,830 |
| VTV | Vanguard Value ETF | 0.24% | $2,325,622,595 |
| SMH | VanEck Semiconductor ETF | 1.67% | $2,171,908,580 |
| SCHD | Schwab US Dividend Equity ETF | -0.41% | $2,116,932,000 |
| GLD | SPDR Gold Shares | -0.25% | $1,926,378,000 |
| CGDV | Capital Group Dividend Value ETF | 0.53% | $1,749,931,008 |
| GDX | VanEck Gold Miners ETF | 0.42% | $1,637,589,675 |
Bottom 10 – 1M Fund Flows
Ticker |
ETF Name |
1-Day % |
Flow |
SPY |
State Street SPDR S&P 500 ETF |
0.84% |
$-5,593,932,981 |
IWM |
iShares Russell 2000 ETF |
0.47% |
$-2,267,281,972 |
ARKK |
ARK Innovation ETF |
2.04% |
$-1,355,480,700 |
KWEB |
KraneShares CSI China Internet ETF |
-0.03% |
$-689,941,613 |
KLMN |
Invesco MSCI North America Climate ETF |
0.80% |
$-672,313,200 |
XBI |
State Street SPDR S&P Biotech ETF |
-0.68% |
$-378,592,856 |
EEMV |
iShares MSCI Emerging Markets Min Vol Factor ETF |
0.49% |
$-337,199,580 |
FDN |
First Trust Dow Jones Internet Index Fund |
2.27% |
$-294,592,500 |
ARKX |
ARK Space & Defense Innovation ETF |
-0.71% |
$-293,020,750 |
IYR |
iShares U.S. Real Estate ETF |
-0.39% |
$-207,176,648 |
Top 10 – YTD Fund Flows
| Ticker | ETF Name | 1-Day % | Flow |
| VTI | Vanguard Total Stock Market ETF | 0.77% | $9,223,389,194 |
| EEM | iShares MSCI Emerging Markets ETF | 1.10% | $5,112,332,571 |
| GLD | SPDR Gold Shares | -0.25% | $4,423,615,900 |
| SMH | VanEck Semiconductor ETF | 1.67% | $3,968,253,265 |
| AGG | iShares Core U.S. Aggregate Bond ETF | -0.05% | $3,764,922,870 |
| VUG | Vanguard Growth ETF | 1.38% | $3,553,269,156 |
| CGDV | Capital Group Dividend Value ETF | 0.53% | $2,969,380,946 |
| SCHD | Schwab US Dividend Equity ETF | -0.41% | $2,529,632,000 |
| VTV | Vanguard Value ETF | 0.24% | $2,252,083,592 |
| IGV | iShares Expanded Tech-Software Sector ETF | 3.11% | $2,015,948,404 |
Bottom 10 – YTD Fund Flows
| Ticker | ETF Name | 1-Day % | Flow |
| SPY | State Street SPDR S&P 500 ETF | 0.84% | $-20,227,412,901 |
| QQQ | Invesco QQQ Trust Series I | 1.45% | $-4,518,798,400 |
| IWM | iShares Russell 2000 ETF | 0.47% | $-4,501,962,513 |
| VIG | Vanguard Dividend Appreciation ETF | 0.38% | $-727,664,395 |
| SLV | iShares Silver Trust | 1.21% | $-684,190,000 |
| KLMN | Invesco MSCI North America Climate ETF | 0.80% | $-672,313,200 |
| EEMV | iShares MSCI Emerging Markets Min Vol Factor ETF | 0.49% | $-616,389,800 |
| IYR | iShares U.S. Real Estate ETF | -0.39% | $-495,182,301 |
| PDP | Invesco Dorsey Wright Momentum ETF | 0.93% | $-391,539,700 |
| COWZ | Pacer US Cash Cows 100 ETF | -0.19% | $-357,537,170 |
Data sourced from FactSet Research Systems Inc.
